Government policies restricting the operation of markets usually do more harm than good. Even in times of crisis, such as the current coronavirus pandemic, policymakers should do everything possible to keep markets working and private incentives strong.
STANFORD – The unprecedented shutdown of much of the US economy that has been ordered by federal, state, and local governments is understandable given the need to slow the coronavirus’s spread. Too often, however, well-intentioned and often long-lasting government interventions prevent markets from working properly and thus do more harm than good. Even in times of crisis, markets solve problems well, because they provide the right incentives to use resources effectively.
STANFORD – The unprecedented shutdown of much of the US economy that has been ordered by federal, state, and local governments is understandable given the need to slow the coronavirus’s spread. Too often, however, well-intentioned and often long-lasting government interventions prevent markets from working properly and thus do more harm than good. Even in times of crisis, markets solve problems well, because they provide the right incentives to use resources effectively.